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The Development of Fiscal Social Accounting Matrix for Indonesia

Author

Listed:
  • Hidayat Amir
  • Ferry Irawan
  • Djoni Hartono
  • Anda Nugroho

    (Fiscal Policy Agency (BKF))

Abstract

The Social Accounting Matrix (SAM), is a matrix to represent the transaction in a socio-economic system. It provides a comprehensive description of an economy with emphasis on social and distributive aspects. It describes the economic flows: income generation by production activities, income distribution, and the redistribution between economic agents. The SAM framework provides a useful tool for various policy analysis such as income distribution analysis and incidence studies. BPS-Statistics Indonesia develops SAM as a complementary of Input-Output Table in every five year. However, the standard SAM only offers a limited set of fiscal instruments. Fiscal policy instruments are important tools in policy analysis for government institutions, namely Fiscal Policy Agency (Badan Kebijakan Fiskal/BKF). BKF is a unit within the Indonesian Ministry of Finance that has the responsibility in the fiscal policy formulation. The purpose of this study is to develop the Fiscal SAM (FiSAM) for the year of 2008. The FiSAM features a more detail fiscal instrument of SAM framework. It captures the government’s indirect tax revenue and government’s transfer. The government’s indirect tax is disaggregated into more detail categories: value added taxes (VAT), sales taxes for luxury items, excises, import tax, property tax, stamp duty, and others (including local taxes). While the government’s transfer is disaggregated into: subsidy for poor students, food subsidy for the poor, conditional cash transfer, and other government’s transfer. With these extensions, the FiSAM has more capability to capture a wide range analysis of fiscal policies more precisely. The FiSAM may also serves as data for further development of Computable General Equilibrium (CGE) models.

Suggested Citation

  • Hidayat Amir & Ferry Irawan & Djoni Hartono & Anda Nugroho, 2015. "The Development of Fiscal Social Accounting Matrix for Indonesia," Working Papers in Economics and Business 201506, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.
    • Handle: RePEc:lpe:wpecbs:201506
    as

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    References listed on IDEAS

    as
    1. Amir, Hidayat & Asafu-Adjaye, John & Ducpham, Tien, 2013. "The impact of the Indonesian income tax reform: A CGE analysis," Economic Modelling, Elsevier, vol. 31(C), pages 492-501.
    2. Susana Santos, 2012. "A SAM (Social Accounting Matrix) approach to the policy decision process," Working Papers Department of Economics 2012/28, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    3. Amir, Hidayat, 2013. "Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach," MPRA Paper 62669, University Library of Munich, Germany.
    4. Amir, Hidayat & Hewings, Geoffrey J.D., 2013. "Distributional Welfare Impact of the 2013 Adjustment of Tax-Free Income Threshold in Indonesia: A CGE Simulation," MPRA Paper 68571, University Library of Munich, Germany.
    5. Philip Adams & Janine Dixon & James Giesecke & Mark Horridge, 2010. "MMRF: Monash Multi-Regional Forecasting Model: A Dynamic Multi-Regional Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers g-223, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Timothy J. Kehoe, 1996. "Social accounting matrices and applied general equilibrium models," Working Papers 563, Federal Reserve Bank of Minneapolis.
    7. Arief Anshory Yusuf & Djoni Hartono & Wawan Hermawan & Yayan, 2008. "AGEFIS:Applied General Equilibrium for FIScal Policy Analysis," Working Papers in Economics and Development Studies (WoPEDS) 200807, Department of Economics, Padjadjaran University, revised Oct 2008.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal; Social Accounting Matrix; BKF; Indonesia;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix

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